Mexfield Housing Cooperative Ltd v Berrisford [2012] 1 AC 955

KEY POINTS

• A lease with an uncertain term is to be treated as a term of 90 years determinable on the death of the tenant.
• The presence of the phrase "from month to month" in the agreement indicates that it was meant to establish a monthly tenancy rather than a periodic lease.

FACTS

• Mexfield Housing Co-Operative Ltd is a housing co-operative that acquires properties from borrowers facing financial difficulties and rents them back to the borrowers. One of the properties was acquired from Ms Ruza Berrisford.
• Under an "Occupancy Agreement" between Mexfield and Ms Berrisford, she was required to pay rent weekly in advance. The agreement allowed termination by Ms Berrisford giving one month's written notice or by Mexfield exercising the right of re-entry in certain specified circumstances.
• Ms Berrisford fell into rent arrears but quickly paid off the amount owed. Instead of using the provisions in the agreement, Mexfield served a notice to quit to end Ms Berrisford's occupancy.

COMMENTARY

• This case is significant as it clarifies the legal treatment of agreements with uncertain terms. It establishes that, in certain circumstances, an agreement lacking a fixed duration can still be considered a lease if it meets the essential characteristics of a lease, such as exclusive possession and the payment of rent.
• The decision ensures that parties are not left in legal uncertainty when dealing with agreements that do not explicitly specify the lease term.